HMRC declare Plastic Packaging Tax rate increase in Autumn 2023 budget

Coming up to two years since the introduction of the UK Plastic Packaging Tax (PPT), HMRC have announced that the tax fee will increase from £210.82 (which applied from April 2023), to £217.85 from April 2024 per tonne, for plastic packaging with less than 30% recycled content. Producers will therefore first see the impact of price rise in tax returns during the Q1 2024/25 period, with the tax return deadline on the last working day of July 2024.

The increase was announced as part of the Autumn Budget 2023, and will be legislated in the Autumn Finance Bill 2023. The increase is in line with consumer price index (CPI), to ensure that PPT continues to incentives the use of recycled plastic in packaging and HMRC stated it will publish an evaluation plan by the end of the year (2023) to gather further evidence to inform future trajectory of the rate and the recycled plastic content threshold.

HMRC have confirmed that any retrospective returns or claims for tax credits for periods in previous financial years will be charged the tax rate applicable in that financial year, so in 2022/2023 the rate was £200 and in 2023/2024 the rate was £210.82.

If you would like support with PPT, Beyondly are on hand to help. Please get in touch with our solutions team - solutions@beyond.ly for more information.

Source: HMRC Autumn Statement 2023